IS FAIR BENEFIT-SHARING IN PES REALISTIC? --- A CASE STUDY IN BAC KAN PROVINCE, VIETNAM
Dam Viet Bac & Delia Catacutan ICRAF Vietnam
3rd Mekong Forum on Water, Food and Energy
Hanoi, 19-21 November 2013
GIVEN: PES IS AN EFFICIENT MARKET-BASED INSTRUMENT THAT PROVIDES BENEFITS TO ES PROVIDERS.
QUESTIONS:
1. BUT HOW FAIR IS THIS BENEFIT TO ES PROVIDERS?
2. HOW CAN THESE BENEFITS BE MADE ‘FAIRER’ TO ES PROVIDERS?
3. WHAT ARE THE METHODS THAT ENSURE ‘FAIRNESS’ IN PES BENEFIT-SHARING?
Efficiency VS fairness in PES
Realistic
Conditional
Voluntary
Pro-poorBDS
Designer
Efficiency and Fairness in BDS Design
Efficiency
Fairness
CASE STUDY: Payment for Forest Environmental services (PFES) in Bac
Kan Province, Northeast Vietnam
Nang River basin as ES Providers LOCATED IN 2 PROVINCES
Environmental Services (ES)
Watershed protection, and landscape beauty (Eco-tourism)
ES Providers Owners (households, communities, organizations), contracted forest protectors, Ba Be national park management
ES Beneficiaries • Na Hang and Ta Lang hydropower plants• Ba Be national park visitors (tourist entrance fee, boat cooperatives);• Voluntary carbon market
ES Intermediaries ICRAF, 3PAD (IFAD), Government line agencies at central, provincial, district, and commune levels
Context of RUPES project site in Bac Kan
PFES Benefit Distribution System in Vietnam
Payment sources
Payment based on K & R factors
Provincial Forest Protection and Development Fund (VNFPF)
Paym
ent
base
d on
lo
cally
sp
ecifi
c m
echa
nis
ms
Environmental services’ providers* Forest owners* Households/individuals contracted by forest owners
Paym
ent
per
fore
st
area
s w
ithin
Ri
ver
Basi
n
An appropriate intermediate payment level(e.g. district or commune)
1. Oppcost: (Land use change analysis, NPV …)
2. Participatory Landscape Analysis (PaLA): was designed through packaging some appropriate Rapid Rural Appraisal/Participatory Rural Appraisal (RRA/PRA) tools/methods in combination with an approach of Agro-ecological analysis in order to capture local knowledge at relevant temporal and spatial scales.
3. Modified REDD+BDS game: choices for benefit types included cash payments, cash for infrastructure provision, agricultural inputs, land use rights certificates or other benefits they proposed.
4. Structured decision-making (SDM) for benefit-sharing:
(SDM) approach is a collaborative and facilitated approach to decision-making that draws upon multiple objective decision-making and group deliberation methods to environmental management problems.
SDM is founded on the idea that good decisions are based on an in-depth understanding of objectives (what’s important) and consequences (what is likely to happen if an alternative is implemented)
Methodology
Na HangHydropowerPlant
• Ba Be National Park• Ba Be Forest
Enterprise• Protection Forest
Management Board• Commune People’s
Committee (uncontracted)
Ta Leng Hydropower plant
• Ba Be National Park
• Boat cooperative• Households with
homestay businesses in Bo Lu and Pac Ngoi villages
Village communityContracted teams/groups
-10% management fee
- < 10% management
- < 5% contingency
Bac Kan FPF
(99.5%)
Vietnam FPF (100%)
VND 20/Kwh
-0.5% mangt. fee
1-2% of revenues
Households
VND 20/Kwh
> 85%
Proposed BDS in PFES in Ba Be District, Bac Kan
Stakeholders’ preference on BDS: case study in Ba Be and Na Ri Districts (Modified REDD+ Game by Dave Eastman, ICRAF/Oregon University)
(1) Preference over purpose-oriented cash for infrastructure and LURCs
(2) First-ranked benefit type, by individual land tenure status (LURC: Land use right certificate)
Opportunity costs of land use changes should be considered and integrated into BDS design.
In the context of unclear, overlapping, or even unrecognized land rights, the BDS must contain arrangements to channel benefit to legitimate groups of forest users in effective and equitable ways.
Making use of existing arrangements for benefit transfer will help to reduce transaction costs.
A wide range of approaches to BDS may be combined, or may work in parallel with different regions, at both national and sub-national levels.
LESSONS LEARNED
Partnerships with national and local partners such as governmental agencies, existing programs/projects, CSOs, NGOs, etc. in terms of learning local knowledge, taking advantage of existing BDS, capacity building, and policy advocacy, will be a key element of a successful BDS.
Finally, the decision to implement PES BDS will not be made without at least a rough estimate of how much PES will cost, and what could be the impacts of such a mechanism.
LESSONS LEARNED (Cont …)
Thanks !
Dam Viet BacResearcher
ICRAF-Vietnam No. 8, Lot13A, Trung Hoa St.Yen Hoa Ward, Cau Giay DistrictHanoi, VietnamEmail: [email protected]
Visit us:
www.worldagroforestrycentre.org www.worldagroforestrycentre.org/sea/vnwww.rupes.worldagroforestrycentre.org
Recommended